The following principles and guidelines were approved by the Annual General Meeting on May 17, 2010.
Senior executives covered include the CEO and President in the parent company, other senior executives in the parent company and the chief executives of the different business areas within the Group. At present the number of senior executives amounts to 6 individuals.
The remuneration to the senior executives shall consist of fixed salary, variable salary, as well as the possibility to participate in a long-term incentive programme and pension and other customary benefits. These components shall create a well balanced remuneration which reflects individual performance and which offers a competitive remuneration package adjusted to conditions on the market.
- The fixed salary is revised yearly and based on the executive's competence and area of responsibility.
- The variable salary may not exceed 50 percent of the fixed salary and is.
- Other benefits shall only constitute of a limited amount in relation to the total remuneration and shall correspond to local practice.
- Pension premiums are paid to insurance companies within the framework of defined contribution plans, with a maximum of 20 percent of the fixed salary and a right to collect pension from the age of 65.
- In the event of notice of termination of employment being served by the Company, there is entitlement to salary during a notice period of a minimum of 6 and a maximum of 18 months. Salary during the notice period is calculated against salary received from a potential new employment.
In special circumstances, the Board may deviate from the above guidelines. In such case, the Board is obligated to give account for the reason for the deviation on the following Annual General Meeting.
Within the framework of the remuneration principles adopted by the Annual General Meeting, the Company applies variable salary of not more than 50 percent of fixed salary calculated according to a combination of results achieved and individual performances to the Company's six senior executives.